Colli Real Estate

New Jersey criminal corruption sting the largest in history

By Michael Webster: Investigative journalist syndicated. November 3, 2009 7:30 p.m. PT

Solomon Dwek, the wire to give testimony of FBI informants turned to the federal government in the most large criminal corruption sting in New Jersey's history emerged recently from the federal protection program long enough to plead guilty a fraud of $ 50 million in the bank. Dwek, 37, pleaded guilty in Federal Court in Newark to one count of money laundering and fraud banking charges that may put him in prison to 11 years.
As Mr. Dwek stood before U.S. District Judge Jose L. Linares appearance in Newark 30 minutes at least he pleaded for separate counts of bank fraud and money laundering in connection with two counterfeit checks totaling more than $ 50 million he tried to deposit at PNC Bank.
"I'm guilty your honor," he said, firmly and without hesitation. Later Monmouth County, the scene was repeated before Superior Court Judge Thomas Scully in Freehold, where Dwek pleaded to charges similar state.
Many people wonder about who is really Dwek and want to know more about him and details about his explosive film projects, private and its role as a cooperating witness to one of the biggest corruption investigation in which federal government's continued last few details began coming to light.
The 2006 Plan is the way is from Dwek to the attention of federal prosecutors, who then made him an informant. Following his arrest, Dwek apparently spent 29 months as a cooperating witness, the establishment of rabbis and other community members religious leaders and which included the mayors of meeting, current political candidates and public officials on charges ranging from political corruption to money laundering in an undercover sting operation that prosecutors have called unprecedented in its scope.
Allegedly Dwek collar 45 people in the chain of 45 that day, seven – from Hudson – have pleaded guilty. Those who have been arrested and they say are innocent include former mayors of Hoboken and Secaucus.
The prosecutor's office of the United States has issued a notice just before the hearing of which Dwek plead guilty saying only that "a central figure" in the July 23 arrests of 45 people on charges of public corruption and money laundering appear federal court before U.S. District Judge Jose L. Linares Newark. A spokesman for the Office refused to answer questions. Dwek of counsel has not returned our calls to our office. Dwek is described in virtually all criminal complaints and every indictment as a witness "cooperating who had been accused of bank fraud, but his name never appears in court records and has not appeared publicly in court as a witness since the sting began. The first trial of those accused of corruption in the sting is scheduled for January 2010, Dwek and should be the main witness in the case.
In less than four years, Dwek went from a real estate mogul with a renowned empire of $ 300 million in seven states with an FBI informant, and admitted felon outcast community.
The following have been reported in The Daily Record ":
… The arrests of these subjects also include religious leaders of the Syrian Jewish enclaves in Brooklyn, Deal and Elberon. According to some sources, the IRS and the FBI seized documents this morning Deal Yeshiva Ohel Yaacob Synagogue on Ocean Avenue in Deal.
The Deal Yeshiva is a religious school that teaches children in the tradition Sephardic Jew, the yeshiva has two distinct divisions: a boys' school on Logan Street in Ocean Township and a girls school on Wall Street, West Long Branch.
The school was founded over 20 years by Rabbi Isaac Dwek and Dwek Raizel, parents of Solomon Dwek, ocean Township. Rabbi Dwek was the President of the School, and Raizel was its treasurer until 2006, when the empire of their son's estate began to collapse after Dwek deposited a bad $ 25.2 million check at a drive-through window at the Bank of PNC in Eatontown. …
Now, the second wave of stories suggesting that Dwek may actually be the key witness in many other arrests.
Here is a report from Bloomberg:
… The witness is cooperating Solomon Dwek, a real estate developer in Monmouth County, New Jersey, which has been May 11, 2006 charged with plotting to defraud PNC Bank of $ 50 million, according to a person familiar with the matter and court records.

Attorneys alleged that Dwek deposited two checks of $ 25 million from another account of his, which had a zero balance. Dwek then wired $ 22.8 million of the PNC wrongly responsible for ensuring that the Bank would provide funds to cover the shortfall, according to prosecutors.

Dwek posted a $ 10 million bonds, secured by $ 3 million in equity in the homes of his stepmother, brother and sister-brother. Dwek has never been charged instead of receiving 17 extensions of a judge to extend the period that his case should be presented to a federal grand jury. …
An Asbury Park Press investigation has shown that people who knew Dwek said he was rich, private, quiet, easy going and a pillar of the community. Business Associates believed to be a respected leader of a religious school, a successful real estate investor, a philanthropist and a devoted father five years. But according to court documents Dwek estate empire could have been built on a foundation of crime that included money laundering, bank fraud and lies.
How could extend his empire so quickly and reduce even faster? And how could banks, lenders, investors and Family members have even been so blind to provide millions of dollars to a man they now say they owed more than $ 338,000,000?
Star Ledger:
Star Ledger reported that the review of court documents he showed before he became an informant Dwek for the FBI, he ran a Wild Ponzi operation in which an investment was being used to repay debt mounting and the last on millions in the same kind geometry that ultimately exposed financial Bernard Madoff. The documents also suggest that, once Dwek repented, he was so good job – launderer money to religious leaders, politicians bribe developer – that some of its targets seems to be practically throwing money at him.
In an amended petition in bankruptcy, Dwek disclosed nearly 500,000 in 20 different secret payments:
There was $ 75,100 from a former partner, "Left in a trash bag behind his desk."
And another $ 28,400, the words "bribes for the sale of properties in Florida."
Some $ 9,000 in deposits back on an agreement of cancellation of two condominium units located in Miron, Israel.
And $ 5,000 that were listed as "fictitious charitable donations given by Solomon Dwek of the American Express card."
According to documents filed by other courts, investors have been led to believe that Dwek would buy goods and simultaneously flip these sales to what has proved to be fictitious parties at a higher price.
In another part of the system described in a series of lawsuits by the trustee, Eli Dwek allegedly paid Seruya, the controller of the company from his uncle, made fraudulent facilitate trafficking through society. The trustee gifts Seruya describes a new Lexus, partial payments on nine condominiums in Israel, and transfers through American Express Dwek more than 1.3 million dollars from a synagogue where the brother of controller was a rabbi and he had access to his accounts, and had the capacity to write checks to himself, the court documents charge.

Payments for most came from people who have been put in place by Dwek. And the money went directly to the EFC, the documents show. The entries, in the words Dwek, were included in the amended petition because by law all assets must be taken into account, even, apparently, if the money came from a shot and was passed on government.
These payments were detailed on an amendment to the bankruptcy petition Dwek to correct the original list of assets he held, and have been described in language surprisingly frank. Included are controls that comes from several Florida and Israel real estate transactions, some involving partial payments of Eliahu Ben-Haim, Rabbi at Congregation Ohel principle Yaacob Deal. Ben Haim has been among those charged in July with money laundering. Another $ 15,300 came out of an agreement of $ 20,000 cancellation that involved Ben Haim and Moshe "Michael Altman," a Hudson County developer who, according to criminal complaints, "washed" over 600,000 in checks dirty cash for Dwek by charities, non-profit entities.

Payment curious – and still unexplained – listed new assets deposited with the court was 75,100 dollars in cash received from Barry Kantrowitz, a real estate broker in Monmouth County who represented Dwek in numerous real estate transactions. According to the filing, the money was left in a garbage bag behind the desk of the broker.
Dwek bankruptcy lawyer, Timothy Neumann, who will not elaborate on the filing.
"I am not at liberty to discuss. The document speaks himself, "he said.

In court he admitted conspiring with Dwek mortgage brokers Joseph Cohen, 39, of Deal, to defraud PNC Bank of more than 50 million Wash and $ 22.8 million dollars of product through other banks.
Kohen pleaded guilty in the case in March 2007. His sentence is pending.
records the Court described its business as a scam millions of dollars orchestrated by Dwek who cheated friends and even his own uncle on property transactions fraudulent.
His real estate was essentially a shell game. He used the money to repay other investors, cover deficits on the so-called "purge" of properties that do not generate the revenues needed to cover the carrying costs, taxes or mortgage payments, and also to make charitable donations, according to documents filed by Charles Stanziale, the court appointed trustee in the case.
"Dwek managed to raise money from new investors by offering benefits to investors earlier false and creating an illusion that was a successful real estate magnate who has made philanthropic investment returns incomparable, "said Stanziale in court documents.
The Ponzi scheme finally collapsed like a house of cards after HSBC, which provided Dwek with a $ 25 million line of credit is late a title search and discovered she had no mortgages on properties, he said he was financing on behalf Dwek of Neptune. According to court documents, Dwek already owned the properties. When the bank finally began to examine the records of ownership, red flags were up, said in court documents filed Stanziale.
Most of those charged in the transaction chain are the claim and the government, when tricked by Dwek and therefore the federal framed "innocent people" to avoid a sentence long.
Dwek posed as a developer, and secretly taped conversations alleged payoffs to officials on proposed projects, and has recorded several rabbis in New York and New Jersey, and others in their religious community, as regards alleged money laundering.
Dwek's lawyers argue the case made for the FBI, all in the hope of avoiding a prison sentence long.
"I think the jury will review the tapes and Dwek, and they will come to the conclusion that the only guilty of criminal conduct Dwek. It is one of the most vilified criminal defendants, we have had in the last decade, and the government wants to erase all of his bad behavior – even things he has not been charged – to make him their star witness, "said Robert Fuggi, a lawyer for Assemblyman Daniel Van Pelt.
Other lawyers said Dwek own misdeeds, which are still unraveled by federal prosecutors, turn on the alleged crimes their customers and the bands in the corruption case show Dwek grow money on people – not government officials requesting payments.
"When there is an undercover informant, it is supposed to be the discovery of the crime happens. In the case of Assemblyman Van Pelt and many others, which was not in progress. Dwek made the crime, the crime is not uncovered. He was the instigator of the crime, and he tried to trap Van Pelt and others "Said Fuggi.
Prosecutors, however, regularly point of entrapment defenses rarely succeed in court.
Willis said federal prosecutors could try to try some customers without Dwek to avoid opening a "box Pandora. It would be difficult and unusual, said several former federal prosecutors.
"It is almost to testify," said John J. Fahy, former head of political corruption in the United States Attorney Office in Newark.
For jurors to hear recordings of alleged bribes, someone must testify that they are legitimate, and Dwek is likely to be best placed to do so, "said Mark Rufalo, former head of the force of the organized crime strike the prosecutor's office of the United States.
"The U.S. prosecutors gave him his gift of Hanukkah earlier this year. It seeks to realistically than five years (in prison) and is fairly lenient, "said attorney Peter Willis representing Assemblyman L. Harvey Smith and Jersey City Councillor Mariano Vega.
Sources:
U.S. District Court in Newark
FBI
PNC Bank
Superior Court Monmouth County
The Daily Record
Bloomberg
An Asbury Park Press
Star Ledger
Robert Fuggi Lawyer
John J. Fahy, a former chief of corruption political office of the United States Attorney in Newark.
Mark Rufalo, former head of the strike force against organized crime in the United States Attorney Office.
Defense Attorney Peter Willis

About the Author

America’s leading authority on Venture Capital/Equity Funding. A trustee on some of the nations largest trade Union funds. A noted Author, Lecturer, Educator, Emergency Manager, Counter-Terrorist, War on Drugs and War on Terrorist Specialist, Business Consultant, Newspaper Publisher. Radio News caster. Labor Law generalist, Teamster Union Business Agent, General Organizer, Union Rank and File Member Grievances Representative, NLRB Union Representative, Union Contract Negotiator, Workers Compensation Appeals Board Hearing Representative. Investigative Reporter for print, electronic and on-line News Agencies.

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